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Transforming Trade Competition into Coordination with PRC

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This paper explores the topics of competition and coordination in trade dynamics in the People's Republic of China. Focusing on the rationality of trade cooperation rather than on the rationality of competition, facts and data will be presented; existing studies from international organizations will be discussed; and conclusions derived by them will be quoted. Although there is an increasing share of service in trade, only merchandise trade is studied here in order to limit the scope of this paper. This paper was prepared for the Latin America/Caribbean and Asia/Pacific Economics and Business Association (LAEBA)'s 4th Annual Meeting held in Lima, Peru, on June 17th, 2008.